From Startup Fortune · · 1m 10s
Microsoft Drops Essex AI Data Center
Microsoft exits UK AI project as power grid delays hit.
In brief
Microsoft exits UK AI project as power grid delays hit. Microsoft abandoned its £2 billion Essex AI data center deal with Nscale due to UK power grid delays, which won't be ready until the 2030s. Originally reported by Startup Fortune.
Microsoft cancels Essex AI deal
Microsoft scrapped its £2 billion data center project with Nscale in Loughton, Essex, after UK power grid delays.
Power grid delays
UK power grid won't be ready until the 2030s, killing the project's timeline for 2027.
Project timeline dead
The Loughton site was meant to house 23,000 Nvidia GB300 chips and start feeding Microsoft's Azure cloud by early 2027.
Nscale's other contracts
Nscale's other Microsoft contracts in Norway, Portugal, and the US remain intact.
Iren's Texas project
Microsoft's Texas data center with IREN delivered its first facility on schedule in August 2026.
Power as the constraint
Power access, not chip supply or capital, is the main constraint on AI data center growth.
Microsoft's Maia chips
Microsoft is producing its own Maia 200 chips to cut Nvidia's cut.
In short
Microsoft abandoned its £2 billion Essex AI data center deal with Nscale due to UK power grid delays, which won't be ready until the 2030s.
